Sturm, Ruger & Company, Inc. (NYSE:RGR) Releases Quarterly Earnings Results, Misses Expectations By $0.07 EPS

by · The Cerbat Gem

Sturm, Ruger & Company, Inc. (NYSE:RGRGet Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.07), FiscalAI reports. The company had revenue of $141.36 million for the quarter, compared to analysts’ expectations of $137.26 million. Sturm, Ruger & Company, Inc. had a positive return on equity of 6.93% and a negative net margin of 0.80%.

Here are the key takeaways from Sturm, Ruger & Company, Inc.’s conference call:

  • Andrew Wieland was appointed SVP & Chief Financial Officer following Tom Dineen’s planned transition, a leadership change the company says will support execution of its long-term plan.
  • Strategic cooperation agreement with Beretta Holding was reached, avoiding a proxy contest, bringing a large industry shareholder and creating stability to focus on growth.
  • Net sales increased 4% to $141M; GAAP diluted EPS was $0.01, while adjusted diluted EPS was $0.27 after excluding strategic and organizational one‑time expenses.
  • Demand momentum: units ordered rose 28% to 525,000, backlog grew 20% to $330M, and new products accounted for 41% of firearm sales this quarter.
  • The quarter included about $7.4M of one-time charges (Beretta agreement, reduction in force, retention awards) and weather-related production disruptions that reduced output by ~30,000 units.

Sturm, Ruger & Company, Inc. Trading Down 2.4%

RGR stock traded down $1.01 on Wednesday, hitting $40.76. The company’s stock had a trading volume of 138,467 shares, compared to its average volume of 173,772. The firm has a 50 day moving average of $40.34 and a two-hundred day moving average of $37.43. Sturm, Ruger & Company, Inc. has a 1 year low of $28.33 and a 1 year high of $48.21. The stock has a market cap of $650.09 million, a price-to-earnings ratio of -145.56 and a beta of 0.21.

Sturm, Ruger & Company, Inc. Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Thursday, May 14th will be given a $0.11 dividend. This is a positive change from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.08. The ex-dividend date is Thursday, May 14th. This represents a $0.44 annualized dividend and a yield of 1.1%. Sturm, Ruger & Company, Inc.’s payout ratio is currently -114.29%.

Hedge Funds Weigh In On Sturm, Ruger & Company, Inc.

Several institutional investors have recently bought and sold shares of RGR. Millennium Management LLC acquired a new position in Sturm, Ruger & Company, Inc. in the 4th quarter valued at $9,486,000. Jane Street Group LLC acquired a new position in Sturm, Ruger & Company, Inc. in the 4th quarter valued at $8,011,000. UBS Group AG increased its stake in Sturm, Ruger & Company, Inc. by 31.1% in the 3rd quarter. UBS Group AG now owns 514,510 shares of the company’s stock valued at $22,366,000 after buying an additional 122,111 shares during the period. HRT Financial LP acquired a new position in Sturm, Ruger & Company, Inc. in the 4th quarter valued at $3,805,000. Finally, Two Sigma Investments LP increased its stake in Sturm, Ruger & Company, Inc. by 118.7% in the 3rd quarter. Two Sigma Investments LP now owns 198,936 shares of the company’s stock valued at $8,648,000 after buying an additional 107,977 shares during the period. 64.00% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Lake Street Capital boosted their price objective on shares of Sturm, Ruger & Company, Inc. from $41.00 to $43.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Zacks Research upgraded shares of Sturm, Ruger & Company, Inc. from a “strong sell” rating to a “hold” rating in a research report on Monday. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Sturm, Ruger & Company, Inc. in a research report on Friday, March 27th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Sturm, Ruger & Company, Inc. has an average rating of “Hold” and a consensus target price of $43.00.

Read Our Latest Report on Sturm, Ruger & Company, Inc.

About Sturm, Ruger & Company, Inc.

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Sturm, Ruger & Company, Inc, founded in 1949 by William B. Ruger and Alexander McCormick Sturm, is a leading American designer and manufacturer of firearms. Headquartered in Newport, New Hampshire, the company has established a reputation for precision engineering and durable products. Its manufacturing footprint includes facilities in Newport and Mayodan, North Carolina, where it maintains a vertically integrated production model spanning metallurgy, machining, and assembly.

The company’s product portfolio encompasses a broad range of small arms, including centerfire and rimfire rifles, shotguns, semi-automatic pistols, revolvers, and accessories.

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